How do organisations work out their staffing needs and find the right people to fill them?
Workforce planning, the recruitment process (internal and external, with job description and person specification) and the methods of selecting the best candidate.
An SQA Higher Business Management answer on workforce planning, recruitment and selection, covering how a firm plans its staffing needs, internal and external recruitment with the job description and person specification, and the methods used to select the best candidate.
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What this key area is asking
Management of people begins by getting the right people into the organisation. The SQA wants you to understand workforce planning (working out staffing needs), the recruitment process (internal versus external, with the job description and person specification), and the selection methods used to choose the best candidate. Higher rewards you for comparing internal and external recruitment and judging which selection method suits a situation.
Workforce planning
Good workforce planning means the firm has the right people, with the right skills, in the right place, at the right time, avoiding both shortages (which halt work) and surpluses (which waste money). When it reveals a gap, the firm recruits.
The recruitment process
Recruitment is the process of attracting suitable candidates to apply for a vacancy. The firm can recruit internally or externally.
Before recruiting, the firm prepares two key documents:
- A job description: a statement of the job itself, its title, duties, responsibilities, hours and who it reports to. It tells applicants what the job involves.
- A person specification: a statement of the ideal candidate, the qualifications, skills, experience and personal qualities needed, often split into "essential" and "desirable". It is used to match applicants to the post.
The firm then advertises the vacancy (internally, online, in the press or through an agency), receives applications (CVs and application forms), and shortlists the best against the person specification.
Methods of selection
Selection chooses the best candidate from those who applied. Common methods:
- Interview: a face-to-face or online discussion to assess suitability, communication and personality, and to explore experience. Widely used but can be subjective.
- Testing: aptitude, skills, psychometric or personality tests that measure ability and fit objectively.
- Assessment centre: candidates complete a range of tasks, group exercises and tests over a day or more, giving a fuller, more reliable picture.
- Presentation or practical task: the candidate performs a job-related task or work sample to prove they can actually do the work.
- References: checking with previous employers or referees to confirm the candidate's record and reliability.
Examples in context
Example 1. A supermarket promoting from within. A supermarket fills a store-manager vacancy by promoting an experienced assistant manager (internal recruitment). This is cheaper and quicker, the candidate already knows the company's systems and culture, and it motivates staff by showing promotion is possible. The drawback is that it creates a new vacancy lower down and brings no outside ideas, so the firm sometimes recruits externally to refresh its thinking, the classic SQA comparison.
Example 2. A tech firm using an assessment centre. A technology company recruiting graduates uses an assessment centre: candidates complete aptitude tests, group tasks, a presentation and interviews over a day. This gives a far more reliable picture than an interview alone, because it sees candidates actually performing tasks, which matters for skilled roles. The cost and time are justified by the importance of choosing the right people, showing why firms combine selection methods.
Try this
Q1. Distinguish between a job description and a person specification. [2 marks]
- Cue. A job description describes the job itself (title, duties, responsibilities, hours, who it reports to); a person specification describes the ideal candidate (the qualifications, skills, experience and qualities needed).
Q2. Explain two advantages of recruiting externally rather than internally. [4 marks]
- Cue. External recruitment brings fresh skills and new ideas into the firm; it offers a wider choice of candidates; it does not create another internal vacancy; and it can bring in experience or expertise the firm does not currently have (any two, developed).
Exam-style practice questions
Practice questions written in the style of SQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
SQA Higher style6 marksCompare internal recruitment with external recruitment.Show worked answer →
Worth 6 marks. "Compare" means show how the two differ, ideally point by point.
Source of candidates (about 2 marks). Internal recruitment fills a post from existing employees within the organisation; external recruitment brings in candidates from outside, for example through job adverts or agencies.
Cost and speed (about 2 marks). Internal is cheaper and quicker because the firm already knows the candidates and needs less advertising and induction; external is more expensive and slower, with advertising, longer selection and full induction.
Skills and motivation (about 2 marks). Internal motivates staff by offering promotion and uses people who know the firm, but creates another vacancy and brings no new ideas; external brings fresh skills, ideas and a wider choice, but the new person is unknown and unproven and may unsettle existing staff hoping for promotion.
SQA Higher style5 marksDescribe methods a business could use to select the best candidate for a job.Show worked answer →
Worth 5 marks. Describe several selection methods, one mark each.
Interview (1 mark). A face-to-face (or online) discussion to assess the candidate's suitability, communication and personality, and to ask about their experience.
Testing (1 mark). Aptitude, skills, psychometric or personality tests to measure ability and fit objectively.
Assessment centre (1 mark). Candidates complete a range of tasks, group exercises and tests over a day or more, giving a fuller picture of their abilities.
Presentation or practical task (1 mark). The candidate performs a task related to the job, such as a presentation or work sample, to show they can actually do it.
References (1 mark). Checking with previous employers or referees to confirm the candidate's record, reliability and suitability.
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Sources & how we know this
- Higher Business Management Course Specification — SQA (2026)
- Higher Business Management Course Code C810 76 — SQA (2026)